Many investors and financial analysts believe the dow jones industrial average (djia) provides a good barometer of the overall stock market. on january 31, 2006, 9 of the 30 stocks making up the djia increased in price (the wall street journal, february 1, 2006). on the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the new york stock exchange (nyse) went up the same day.

1. formulate null and alternative hypotheses to test the analyst's claim.

h0: p
ha: p

2. a sample of 50 stocks traded on the nyse that day showed that 24 went up. what is your point estimate of the population proportion of stocks that went up (to 2 decimals)?

3. conduct your hypothesis test using = .01 as the level of significance.

calculate the value of the test statistic (to 2 decimals).

what is the p-value (to 4 decimals)?

can you conclude that the proportion of stocks going up is not .30?